Question # 3. The following table classifies a stock's price change as up, down, or no change for both today's and yesterday's prices. Price changes were examined for 100 days. A financial theory states that stock process follow what is called a "random walk". This means, in part, that the price change today for a stock must be independent of yesterday's price change. Test the hypothesis that daily stock price changes for this stock are independent. Let a = 0.05 Price Change Today Up No Change Down Up 14 6 16 Price Change Previous Day No Change Down 16 12 8 14 6 8

Q: 2x² 7 3

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A: We solve both questions as you mentioned it... Thank you for choosing bartleby

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